Sonoma Schools Boost Budget Outlook Amid Enrollment Drops: Report

SONOMA VALLEY, CA — Signaling a shift in its financial trajectory, the Sonoma Valley Unified School District improved its outlook this month, projecting a stronger budget despite declining enrollment and upcoming school closures.

At the March 12 board meeting, Associate Superintendent Rena Seifts presented the second interim fiscal report, showing a $545,472 increase in the projected ending fund balance for 2025–26 over December estimates, the Sonoma Index-Tribune reported.The improvement comes from higher revenues and lower expenses. Seifts attributed the $239,507 revenue increase mainly to higher property taxes and more local donations, according to the Sonoma Index-Tribune.

The district cut $305,865 in projected spending, mainly by lowering employee salaries and benefits, the Sonoma Index-Tribune reported.

These changes raise the projected ending fund balance, with forecasts estimating it will grow from $11.8 million in 2025–26 to $16.3 million in 2026–27 and $22 million in 2027–28, according to the Sonoma Index-Tribune.

However, officials plan to cut $2.8 million in classified staff and $1.2 million in certificated salaries, mostly through layoffs and closures. Many reductions are tied to declining enrollment, which reduces district funding and requires staff cuts. Average daily attendance is projected to fall from 2,776 in 2025–26 to 2,294 by 2027–28, according to the Sonoma Index-Tribune.

That drop reflects structural changes, including the planned closure of Prestwood Elementary School and the launch of MacArthur Park Charter School on the same campus in fall 2026. Lower enrollment—such as the charter school's updated 199 students, below projections—prompted revised staffing assumptions, as fewer students mean fewer teachers and support staff, the Sonoma Index-Tribune reported.

At the same time, according to the Sonoma Index-Tribune, the district anticipates steady growth in property tax revenue, projecting annual increases of 3.5%. Additional gains are expected from in-lieu property tax payments tied to the charter school, totaling $2.3 million in 2026–27 and $600,000 the following year.

The district’s reserve levels are also climbing. Officials project available reserves to rise from 9% in 2025–26 to 21.2% by 2027–28—well above the board’s current 10% target. But, the Sonoma Index-Tribune reported that board members urged caution in interpreting those numbers.